Consumers Are Focused on AI Powered and Value Spending While Retailers.jpeg
The first half of the year was an educational curve for all. Economic uncertainty has constantly changing definitions, rapid acceleration of artificial intelligence, cautious consumer spending and changes within the Apple iOS 18 on many brands.
Listrak recently released three reports – “H2 2025 Beauty Retail Outlook”, “H2 2025 Fashion Retail Opplick” and “H2 2025 Retail Outlook” – to give brands of visions about what succeeded and what did not happen in the first half of the year and what will come in the second months.
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Fashion is expected to grow between 3 percent and 5 percent, while strengthening non -glamorous brands of this height. Likewise, e-commerce drives beauty growth-to be a third of cosmetic sales online.
In general, Listrak data showed that SMS continued to rise. With the appearance of RCS (rich communication services) with new capabilities, SMS revenue increased by 30 percent. Meanwhile, the email sharing has decreased significantly as consumers suffer from fatigue and as a result of Apple mail changes. Trademarks witness a 29 percent decrease in each click to appear and revenue. But a bright point is that the conversion rates increased by 7 percent on an annual basis, as the intentional consumers remained involved.
It is worth noting that the largest trademarks of brands for the first half of the year are that consumers spend less and depend on sales (42 percent), the supply chain (26 percent), tariff fluctuation (22 percent) and Apple mail changes (11 %).
Fast food from the first half included consumers who realize and extend their programs on the dollar, expertise and loyalty to focus on allocation, participation and digital brands that doubled the material retail experiences and diversify their offers.
Brands Listar told that its comprehensive plan for the second half includes price increases (25 percent), fixing discounts (23 percent), diversification of supply chains (20 percent), artificial intelligence capabilities (20 percent), RCS (7 percent) and adopting the beloved/used space (5 percent).
According to the authors of the reports, the three trends that will determine the second half are the pressure pressure, the value -based behavior, the fluctuation of inventory, the lightness of operational movement and the emergence of shopping assistants working in artificial intelligence.
The market indicates the pressure pressure and the value -based behavior with deception trends, special stickers in targeted scaling and Costco at lower prices, love brands and initiative such as Nuly and the runway rental acquires momentum.
Moreover, the closure of Shein and Temu gaps in terms of importing them to the United States also has also strengthened competitors at reasonable prices. Thirty -seven percent of shoppers said they were planning to reduce any unnecessary spending to go to summer seasons and holidays. For fashion and beauty, the value capture will be of the utmost importance to consumers. Trademarks need to attract the ambitious but conscious customer.
With retailers searching beyond China to diversify their supply chains, the stock is more difficult than ever. Imports from China-as a result of president Trump’s definitions-decreased by 65 percent year on an annual basis, and the cancellation of requests increased by 60 percent compared to 2020. But according to Listrak data, low-inventory SMS alerts led to 42 percent revenues on an annual basis-which proves that scarcity is already selling.
Artificial intelligence continued in everyone’s mind – 53 percent of consumers said they are planning to use artificial intelligence to support their 2025 purchase decisions. Listrak said the industry will witness a transformation from traditional search engines to use during the holiday season. Several retailers will start adapting quickly by investing in artificial intelligence tools on their e -commerce platforms to help discover the product, enhance customization and simplify the purchase path.
While Chatgpt previously told WWD Sister Sourcing Journal in April that it had not had any plans to achieve income from the recommendations of its products, the artificial intelligence company changed its opinion. More than 50 per cent of the CEO of fashion included in Listrak said they see artificial intelligence as a major engine to discover the product for this year and 43 percent of retailers already use Chatbots on their site to process customer service and reduce friction. In general, there was a 155 percent increase on an annual basis of traffic from artificial intelligence tools to e -commerce sites.
“We mentioned the first half of 2025 that the success of the retail sale is not related to the prediction of the future – it is about preparing for the future,” said Jimmy Elen, the Listrak chief revenue official, said. “Although the change is fixed, with the right visions and tactics, retailers can turn the change into an advantage. To support retail momentum throughout the second half of 2025, Listrak experts have selected, use of predictive Listrak intelligence, determining the main trends and providing tactics to operate success through the balance of the year.”
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